The Asian Infrastructure Investment Bank (AIIB) has agreed to give $400 million loans to Bangladesh as budget support to help it protect the strained forex reserves.
The government of Bangladesh on Monday signed a loan deal with the China-initiated lending agency, says a release.
The money is coming under a scheme called “Climate Resilient Inclusive Development Programme-Subprogram 2”
Mirana Mahrukh, additional secretary of Economic Relations Division
(ERD) and AIIB official Rajat Misra signed the loan documents on behalf of their respective sides at an event in Dhaka.
Misra is the lending agencyh’s acting chief investment officer of Public Sector (Region 1) and Financial Institutions and Funds
(Global) Clients and Director General of Public Sector Clients Department Region 1.
This Programme has been taken by the Finance Division. The scope of the
Programme includes reform areas like creating an enabling environment for implementing climate priorities
across ministries, cacilitation of climate adaptation priorities and accelerating climate change mitigation actions.
The loan, which will be received in standard terms and conditions of the AIIB, has a maturity period of 35 years, including a five-year grace period.
It carries an interest rate based on the Secured Overnight Financing Rate (SOFR) plus a variable spread, with a front-end fee of 0.25 percent.